The FCC’s New Initiative Punishes States That Have Tried to Close the Digital Divide

In a surprise move, between the publication of the draft Rural Digital Opportunity Fund Report and Order and the Federal Communications Commission’s final vote on the Report and Order, the FCC added the line stating that census blocks receiving “funding through other similar federal or state broadband subsidy programs” would be ineligible for Phase I RDOF funds. In doing so, the FCC has likely impacted the ability of numerous states and millions of Americans residing in large rural census blocks to benefit from RDOF. According to a PEW Report from December 2019, 25 states have established their own broadband funds. According to research undertaken by FCC Commissioner Geoffrey Starks, nearly 30 states may find their eligibility for RDOF funds reduced or eliminated. However, it is difficult to estimate the true effect of this language, because how it will be implemented is maddeningly unclear. First, it is unclear how the FCC will gather information to know which census blocks have an internet service provider that is a state grant recipient. It’s also unclear how much funding disqualifies an ISP, and therefore the census block. And it’s unclear if the FCC will have a challenge process for blocks declared ineligible on the basis of receiving state funding in the same way it has a challenge process for deeming blocks ineligible due to existing coverage. This makes it impossible to assess the impact of the FCC’s last-minute decision. However, this language does not allow all ISPs to use both state and federal funding to deploy broadband. The FCC should, and traditionally has, encouraged states to promote broadband deployment.